DIGITAL PAYMENTS RISK CONSIDERATIONS AND THE ROLE OF INTERNAL AUDIT

Nearly 88% respondents prefer cashless payment over cash payment, with 48% using digital payment for more than 75% of their transactions. Ease of doing payments is one of the key factors for users to move towards digital payment.

As high as 88% of respondents expressed their will to adopt digital payment, however security concerns and lack of awareness act as key barriers. All respondents cited security of end points/ devices being used for digital payments as a major concern. Other risk considerations are data privacy, emerging technology risk, information processing, fraud risk, reduced flexibility, and compliance with regulation.

What role is Internal Audit playing in your organisation either advisory or assurance regarding the implementation of new payment technologies?

Internal audit leaders and functions are at the fore front of providing confidence over the technological change revolution. Cybersecurity issues, digitisation, the global proliferation of mobile devices and the rapidly maturing Internet of Things are succeeding in connecting more people but bring with them a horde of related business and technology risks.

Internal auditors have the unenviable task of helping organisations to steer their business through this period of intense technical change, while also helping to oversee the IT risks that could cripple the enterprise.

The first thing the internal audit function should do is ensure its early engagement in technology projects. Internal auditors need to have a multi-faceted, risk-based approach to auditing IT, which includes being involved at all stages of major technology change programme – from the planning and design phase through to implementation, testing and go-live.